India credit, charge card payment market to cross Rs. 25,91,700 crore (US$ 300 billion) in 2025: Report

India’s credit and charge card payments market is poised for robust growth, with the transaction value expected to rise by 14% in 2025 to Rs. 25,40,000 crore (US$ 294 billion), according to a report by GlobalData. This expansion follows a 15.3% growth in 2024, driven by increasing consumer preference for non-cash transactions, higher income levels, and bank-led promotional efforts. Despite lower penetration compared to debit cards, credit and charge cards accounted for 81% of total payment card transaction value in 2024, reflecting their high frequency of use, which is expected to reach 54.2 times annually in 2025. Value-added features such as cashback, discounts, and Equated Monthly Instalment (EMI) options are contributing to their popularity, particularly for e-commerce transactions, which represented 11.2% of total online payments in 2024.
While credit card spending declined 3.6% MoM in June 2025 to Rs. 1,83,000 crore (US$ 21.18 billion), the overall outlook remains positive. Total card spends are projected to rise in the coming months, supported by the festive season and broader consumption recovery in FY26. According to IDBI Capital, lenders are likely to prioritise credit quality and focus on cross-selling to existing customers rather than aggressive new acquisitions. As of May 2025, India had 111.2 million cards in force, growing 7% YoY. With sustained consumer demand, rising digital adoption, and improving merchant infrastructure, the credit and charge card segment is expected to grow at a CAGR of 11.5% between 2025 and 2029, reaching Rs. 39,30,000 crore (US$ 454.91 billion) by 2029.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.